May 6, 2026
According to Lobien Realty Group (LRG), the Philippine real estate market is no longer simply recovering—it is entering a phase of strategic recalibration. In its Real Estate Outlook 2026: The Next Growth Frontiers, LRG highlights a clear shift away from the traditional focus on prime Metro Manila locations toward areas that offer better connectivity and long-term investment potential, particularly in provincial regions.
Sheila Lobien, Founder and CEO of LRG, shared that both their data and on-the-ground experience in Central Luzon and the CALABARZON region point to the growing importance of infrastructure development. She noted that the government is aware of the significant housing backlog—around 1.4 million units in CALABARZON and 25,000 in Central Luzon, making up about 22% of the country’s total unmet housing demand. Because of this, she emphasized the need for more road networks that can support large-scale township developments, similar to what is already happening in these regions.
Lobien explained that expanding development outside Metro Manila brings several economic benefits. These include a more balanced distribution of economic activity across regions, better job opportunities for provincial workers, and stronger collaboration between the private sector and government in infrastructure development.
She also pointed out that townships beyond the NCR are becoming key drivers of regional growth. The presence of 27 townships across Central Luzon and CALABARZON—areas that have consistently outperformed NCR in regional economic growth—shows that developers are actively investing where they see long-term value. The same trend is also evident in cities like Cebu, Bacolod, Iloilo, and Davao.
Another advantage of these developments is their potential to address labor challenges, particularly in the BPO sector. By creating master-planned communities outside Metro Manila, developers can tap into underutilized talent pools in the provinces. This not only boosts local employment but also helps ease congestion and migration pressure in the capital. In this sense, townships are becoming a practical, market-driven solution to the mismatch between where jobs are located and where workers live.
LRG also observed that accessibility has become a top priority for homebuyers. Infrastructure projects in Central Luzon and CALABARZON are attracting more residential developments due to three main factors: more affordable housing compared to Metro Manila, improved mobility through better roads, and the need for larger living spaces as flexible work and study arrangements become more common.
This shift is reflected in market data as well. The Bangko Sentral ng Pilipinas’ Residential Property Price Index shows that provincial property prices grew by 11.5% in 2025, far outpacing Metro Manila’s 2.4%. Meanwhile, housing loans are increasingly concentrated in these regions, with CALABARZON accounting for 33.2% and Central Luzon 11.9%, both surpassing Metro Manila’s share. This indicates that more buyers now see these areas as strong alternatives to living in the capital.
The clustering of townships—14 in Pampanga and Bulacan, and 13 in Laguna and Cavite—is also intentional. Developers are aligning their projects with major infrastructure investments such as the North-South Commuter Railway, CALAX, and the planned Bulacan airport, which includes a massive 2,500-hectare township. These developments reflect a coordinated effort between the government and private sector to decongest Metro Manila and promote growth in surrounding regions.
To sustain this momentum, Lobien emphasized the role of local government units. Beyond attracting developers, LGUs need to create a supportive environment by offering incentives to businesses, maintaining peace and order, and investing in workforce development. She cited major projects like Capital Town in Pampanga, expected to generate 250,000 jobs, and Maple Grove in Cavite, projected to create up to 500,000 jobs, as examples of how townships can significantly boost local economies and expand the tax base.
Ultimately, Lobien believes that if more developers continue investing in these kinds of projects, it will strengthen the overall story of regional growth in the Philippines.
Read the article here:
https://businessmirror.com.ph/2026/05/05/lobien-realty-group-signals-a-move-toward-strategic-recalibration/
The Philippine IT-BPM industry is entering a new phase of growth—one that is increasingly being shaped by cities outside Metro Manila.
According to Sheila Lobien, Founder and CEO of Lobien Realty Group (LRG), the industry's expansion is no longer concentrated within the National Capital Region. Instead, companies are looking toward provincial locations that offer a combination of skilled talent, reliable infrastructure, strong local governance, peace and order, and robust digital connectivity.
As of early 2026, Metro Manila’s residential condominium market continues to grapple with elevated vacancy levels, with around 24.7 percent of units remaining unoccupied. In simple terms, roughly one out of every four condo units across the metropolis is vacant.
Across the provinces of Cavite, Laguna, and Batangas—now widely regarded as Southern Luzon’s emerging residential growth corridor—horizontal housing developments continue to expand rapidly despite lingering post-pandemic challenges and global economic uncertainties.
Despite the challenges currently facing the local real estate market, opportunities still exist for investors willing to look closely at the market landscape. According to Sheila Lobien, there will always be areas within the property sector that present potential despite the stage of the real estate cycle. In an interview with the BusinessMirror, she explained that some landlords, unable to cope with difficult economic conditions, are lowering rental rates, making quality commercial spaces more accessible to tenants and investors.
Lobien Realty Group is the No. 1 Realty Property Provider in the Philippines. We provide office and commercial spaces, lots and properties for sale/lease in the cities of Makati, Taguig, Pasig, Mandaluyong, San Juan, Pasay, Parañaque, Las Piñas, Quezon, and Caloocan.